A Report On A Business Organization

The business I have chosen for this investigation is ASDA superstore. This is a large chain of supermarkets throughout Britain which retails clothes, merchandise, food, and electronics etc. in this part of my course work I will briefly explain the aims and objectives of ASDA I will also explain the external factors which affect the aims and objectives of the business however I will first be talking about a brief history of ASDA.

This business report aims to show how important a marketing plan is, demonstrate the key elements of a successful marketing plan and how a marketing plan helps a company to sell its products and service. This Marketing plan will use the company Aldi as a case study, (the supermarket chain) to demonstrate how a marketing plan works. Aldi is a major supermarket chain that provides highly competitive retail food products to households. As a retail company they face all the marketing problems that other retail company faces (product range, price and marketing segmentation).

Established in 1913 in Germany, ALDI operates what are known in the grocery business as "limited-assortment" stores or "hard discounters." ALDI has taken this retail concept, which features low overhead and scanty selection, to its leanest, meanest extreme.

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

1.3 Physical Resources & Capabilities The ALDI brothers took over the family business of their parents in 1946. World wide expansion led to enormous growth. This comprises around 9800 stores (1000 to 1500 SQM each). The layout is simple with wide ails designed to refill shelves in the fastest, most convenient way {Brands, D. 2003}. They offer a small assortment of mainly fast-moving items (approximately 700 food – including a slim and organic line- and non food products). Small warehouses are located at the back of each store. Affiliates are equipped with limited technology such as intelligent cash systems high-end product concerning quality and price and bottle deposit machines. ALDI won the 2008 energy management award for great results in terms of cooling systems, illumination etc. Most stores have about 100 parking space and a shopping cart area near the entrance. ALDI has a long history which implies that they have gained great experience over the years. The location and layout of stores are designed to support fast and efficient supply and not especially aimed at customer needs. This is a weakness. Stores advantageously located as there are in convenient reach for consumers. Their product range is adapted to various consumer needs (organic, healthy living). The technological equipments are of high quality enabling fast operations at the checkout (ALDI’s staff are two times faster compared with other similar operations). This is

Aldi (Albrecht Discount) is a family based, discount supermarket chain based in Germany. The first foundation stone was laid in 1913 with the opening of a small food store in the German town of Essen. These organizations operate independently from each other within specific market boundaries.  The core values and principles that the brothers founded the business upon at the outset continue to be central to the strategic direction and decision-making principles today.

This report is going to present the current culture of Aldi, critically examining its current culture and possible proposal for a change in culture. It identifies the current organisational culture, its strengths and weaknesses and make recommendations necessary for an organisational culture change.

IDENTIFY AND REVIEW THE RELEVANT RANGE OF OPERATIONS AND THE SPHERE OF BUSINESS ARRANGEMENTS OF THE ORGANISATION

“ ALDI is the world’s biggest discount store operator by sales,” (Thomasson, 2014). While ALDI is a major player in the grocery market today the company started with modest beginnings. The Albrecht family founded the small food store ALDI in Germany in 1914, (History, n.d.). The word ALDI was “coined from the word Albrecht, the surname of the brothers who founded the enterprise and the word discount,”(Loeb, 2015). The ALDI Corporation is split into two divisions ALDI South which operates many of the traditional ALDI stores and ALDI North that operate Trader Joe’s supermarkets, (Loeb, 2015). ALDI made their debut in the U.S. in 1976 in Southeaster, Iowa and gradually expanded, (Loeb, 2015). Overall, the company operates 9,600 stores between Europe, the United States and Australia. ALDI is praised for their low prices and efficient business model; the mission directly reflects their values, “ At ALDI, we believe that great quality shouldn’t come at a high price; rather, great quality should come with everyday low prices,” (About ALDI USA, n.d.).

ALDI is a supermarket chain that markets value and discount to its customers. Buyer bargaining power refers to the amount of leverage customers have on the company to provide better service, better products or lower prices. Customers of ALDI have a relatively low bargaining power relative to other grocery stores. Reason being, this chain offers very low prices because it distributes custom-branded products that are exclusive to the chain. Because of this, ALDI does not need to have exorbitantly high mark-ups to generate a strong profit. Customers have very low bargaining power for prices because the prices of its products are remarkably low compared to other products. Another reason ALDI customers have a low bargaining power is because it is known for high quality customer

The ALDI brand has many strengths, including sales volumes, providing nutritional products, discounts are passed on to consumers, and fast efficient shopping. “ALDI is the world’s largest discount store operator by sales and has flourished for more than 40 years without stocking major brands,” ( news.yahoo.com) The fact that ALDI is the world’s largest discounter without having to pay the price of carrying major brands is an impressive feat. The brand capitalizes on this in the United States with “ about $8 billion in annual sales and is growing from 15 to 20 percent per year,” ( bloomberg.com) .

The ALDI brand has many strengths including sales volumes, providing nutritional products, discounts are passed on to consumers, and fast efficient shopping. “ALDI is the world’s largest discount store operator by sales and has flourished for more than 40 years without stocking major brands,” ( news.yahoo.com) The fact that ALDI is the world’s largest discounter without having to pay the price of carrying major brands is an impressive feat. The brand capitalizes on this in the United States with “ about $8 billion in annual sales and is growing from 15 to 20 percent per year,” ( bloomberg.com) .

Aldi, short for “Albrecht Discount”, operating in a globalized environment with stores all around the UK. It is a German multinational headquartered in Essen (reference). Hence Aldi’s performance is highly influenced by the political and legislative conditions of these countries, including the European Union (EU).

ALDI, mainly target middle class people whose main factor in buying is low price for quality product, pursuing cost leadership strategy (Bonn, 2010). It is used to for reducing operations cost

The structure of an organisation is built in order to achieve the distinct tasks by the labour and coordination between teams to provide goods and services. Organisational structure is selected in order to have a basic work and consistency according to the situation. The most foremost factors in an organisation are skilled labours, mutual understanding among the fellows and direct control to frame a good result. A good structured organisation results in quality production, which can be taken into peoples consider through marketing. When an organisation tracks in a solid structure, management plans and tasks can be easily constructed and executed. In this essay, I have been explained about the concept of Mintzberg five